Common use of Consideration for Covenants Clause in Contracts

Consideration for Covenants. Employee acknowledges and agrees that the Company's willingness to engage in its acquisition of the Subsidiary (by merger of the Subsidiary with a subsidiary of the Company) and to raise the capital necessary to effect the aforesaid merger was conditioned upon Employer's representation that he would execute an employment agreement subsequent to the merger containing restrictive covenants of the nature contained herein (an "Employment Agreement") and Employee further acknowledges that the grant of the Option was conditioned upon Employee's willingness to enter into an Employment Agreement and to effect the undertakings set forth herein.